7,800 Kenyans Face Layoffs as EPZ Investor Sells Property

Some 7,850 employees of Ashton Apparel and Mombasa Apparel in a Mombasa EPZ are staring at job losses as a planned sale move nears actualization.

Both Aston and Mombasa Apparel companies are set to be transferred to a company named Gokaldas Exports Limited, according to findings of the National Assembly Committee on Labour.

As per the Committee, they have been under the ownership of a single investor and had employees accumulating to 7,850 whom the new investor declared intentions to layoff. 

According to a letter presented before the committee, one of the employers notified the employees of its plans to declare their positions redundant after December 23. 

Further, the company told its employees that they would be hired back only depending on the requirements of the new ownership. 

On Monday, November 27, Principal Secretary in the Labour Department Shadrack Mwadime appeared before the Committee to respond to questions on the plight of the over 7,000 employees.

In his response, the PS assured that the management of two companies would appear before the Labour Office in Mombasa for clarifications on the employees’ uncertain future.

Additionally, members of the Labour Committee grilled PS Mwadime on various concerns raised by Changamwe MP Omar Mwinyi alluding to unfair treatment of the employees.

In a past session, Mwadime had requested the Labour Committee to investigate among others, alleged failure to remit statutory deductions (NSSF, NHIF, PAYE) and the status of sick leaves, leave days and allowances as provided by the law.

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MP pushes for probe on EPZ firm

Mwinyi also requested for answers on alleged sexual harassment claims and complaints of employees being discouraged from joining trade unions.

In his response, however, PS Mwadime assured them that the two companies were compliant and that they were members of the Federation of Kenya Employers (FKE).

However, PS Mwadime told the Committee that the companies do not have a recognition agreement with any trade union.

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However, the lawmakers were not satisfied with the Ministry’s responses and particularly Mombasa labor officers.

The Committee will continue the inquiry into the plight and fate of the workers before tabling a report in the National Assembly.